Only 2% of budget to support small businesses is not enough, says BOSA

25 July 2024

Madam Speaker

Honourable members

South Africans watching this debate

The Appropriations Bill has the all-important job of enabling every department of the national government to implement its plans, policies and programmes to deliver services to all 61 million South Africans.

It directs R1.1 trillion of public funds to government, entrusting politicians and public offices to spend it wisely, fruitfully and honestly.

It is then this House’s responsibility to oversee the spending of these public funds, and to hold government accountable for each cent.

I wish to highlight three aspects of the Bill to this House.

Firstly, the underfunding of the Department of Small Business Development. Just R2.4 million is allocated from a total allocation of R1.1 billion.

South Africa has an unemployment crisis, with over 11 million people jobless. This crucial department has the mandate to “place SMMEs at the centre of economic growth and job creation”.

Considering the NDP states 90% of all new jobs created by 2030 will be by SMMEs, a mere 2% of the national budget is well off the mark.

Secondly, we welcome the R24 billion appropriated directly to the Department of Water and Sanitation. There is a water crisis looming and must be averted. Despite this, last year R44 million was returned by the DWS to the Treasury having not been spent.

BOSA rejects any underspending until there is clean drinking water in every home.

And finally, BOSA wishes to raise the important matter of free basic services to indigent citizens

The Municipal Indigent Policy is intended to improve the lives of indigent citizens and to improve access to free basic services such as free basic water, free basic sanitation, free basic energy/electricity and free basic refuse removal for those who cannot afford.

Despite the major need for social assistance and the funding constraints, the indigent grant is underspent significantly as many municipalities are not compiling their registers properly so that those who are entitled to assistance, actually get the assistance

President Ramaphosa, in his reply speech to Parliament this week, addressed this matter and called for more optimal implementation.

To expedite this process, BOSA calls on the Minister of Cooperative Governance to request from each municipality:

1.      The number of indigent households registered on the municipality’s indigent registry in the previous financial year.

2.      A breakdown of how funds are spent; and

3.      Provided there is a slow uptake of indigent subsidy registrations, what is the plan to correct this phenomenon?

We have a duty to protect our most vulnerable citizens from the indignity and suffering of extreme poverty.

I thank you.

Issued by Nobuntu Hlazo-Webster, Deputy Leader, BOSA, 25 July 2024